Canadian Gift Planning
Planned gifts can benefit the University of Oxford and can help you to save tax, secure your income and pass more money on to your loved ones.
Section 3503 of the Canadian Income Tax Regulations state that, when Canadians make gifts to certain foreign universities, the tax consequences are the same as if the gift was made to a Canadian charity. The University of Oxford is on the approved list of foreign universities.
Below are some of the most popular ways of making a Planned Gift in Canada.
Bequest
One of the easiest ways to support the University of Oxford and its colleges is through a bequest in your will. Please instruct the person who drafts your will to make the bequest payable to the University of Oxford using the corporate language below. It is important that you specifically indicate that you wish the gift to be used by the University or a particular Oxford college. The corporate language for the University of Oxford is: The Chancellor, Masters and Scholars of the University of Oxford. The bequest will result in a tax credit on your final income tax return.
Beneficiary Designation
Another easy way to make a future gift is by naming the University of Oxford as a beneficiary of a life insurance policy or of remaining assets in a retirement fund, such as an RRSP or RRIF. As noted above, in a gift letter or other document indicate that this gift is for the benefit of the University of Oxford or a specified college. Also, as explained above, such gifts result in a tax credit on your final income tax return.
Charitable Remainder Trust
You can transfer cash, securities or real estate into a trust and arrange for trust income to be paid to you and/or another individual beneficiary for life or a term of years. At the termination of the trust, the remaining assets would be paid to the University of Oxford and could be used for the benefit of the University or a college.
Upon the funding of the trust, you would receive a donation receipt for the present value of the remainder that will be distributed to the University or your college. Thus, in addition to income, you would save taxes now, and you would have the satisfaction of having arranged a future gift. With a trust you can also provide for the professional management of assets, if you or other beneficiary is unable or disinclined to assume this responsibility.
If you transfer appreciated property to a charitable remainder trust, a portion of the gain will be taxable. However, the tax credit usually exceeds the tax on the gain, resulting in net tax savings.
Retained Life Estate
Under this plan, you transfer title to real estate (typically a primary residence or a vacation cottage) and you retain the right to occupy it for the remainder of your life. You are entitled to a donation receipt for the present value of the residual interest in the property, and this receipt results in a tax credit. Thus, you are able to save taxes without altering your lifestyle.
In the event that health or other reasons cause you to move, the property could be sold and the proceeds allocated to you and Oxford, you could rent the property and collect the rents, or you could give your life occupancy right and get another donation receipt.
When you give the residual interest of a principal residence, there is no tax on the capital gain. If the property is not a principal residence, a portion of the gain would be taxable, but the tax credit would exceed the tax, resulting in significant net tax savings.
Our Availability
We are available to help you and your advisors plan a gift, in confidence and without obligation, which will help you achieve your financial, philanthropic and estate planning goals. We will do everything to make the process as simple as possible. We review each proposed gift on an individual basis and endeavour to make certain, where possible, your wishes are fulfilled.